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Apple said today that its App Store has now crossed 10 billion downloads of both free and paid apps.

The 10 billionth app was Paper Glider, downloaded by Gail Davis of Orpington, Kent, in the United Kingdom. She won a $10,000 iTunes gift card. We’ll see if she ever pays for another app.

It’s a pretty big milestone for Apple, and it shows that rivals such as Google Android and Palm have a long way to go to catch up with Apple, which has shipped more than 160 million iOS devices (iPhone, iPod Touch, and iPad).

Phil Schiller, senior vice president of worldwide product marketing, said there were 7 billion apps downloaded in the last year alone. And the App Store has only been open for 2.5 years. Anyone got a guess for how soon Apple hits 100 billion apps downloaded?

Apple now has more than 350,000 apps available, with more than 60,000 native iPad apps.

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